July 17, 2019 Newsletter

Dear Friends,

Tangents:
On July 17, 1975, an Apollo spaceship docked with a Soyuz spacecraft in orbit in the first superpower linkup of its kind.  Go to article »

Apollo 11 engineers discuss what it took to get to the moon.

A swan census

This week, scarlet-clad teams are rowing the River Thames in southern England, counting swans.

Since the 12th century, British monarchs have asserted exclusive rights to most of the country’s mute swans. But two groups descended from London’s medieval craft guilds own swans on the Thames, and mark them to show as much.

The Queen’s Swan Marker examining a young bird in London on Tuesday.  Toby Melville/Reuters It’s called “Swan Upping,” perhaps because the searchers “take up” the swans they find for examination and enumeration.

Swans were a medieval delicacy, prized at banquets. But these days, they are protected in Britain, and eating them is forbidden.

In 2005, the composer and conductor Peter Maxwell Davies made a terrine from a swan he said had died after flying into a power line. The police questioned him, and he pondered whether he might have to serve time “with a ball and chain in the Tower of London.”

He got off, maintaining that “making a delicious terrine” was within his rights. –The New York Times.

PHOTOS OF THE DAY

The bright orange disc of the full moon is seen rising over Glastonbury Tor, late on July 15 2019. The full moon is July is called the Buck Moon – named after the time new antlers emerge from a Buck’s forehead.
CREDIT: PAUL SILVERS / SWINS

Model rockets are launched at the U.S Space & Rocket Center in Huntsville, US, on the 50^th anniversary of the Apollo II liftoff. Organisers attempted to break a Guinness World Record by launching 5,000 simultaneously.
CREDIT: JOE SONGER/THE HUNTSVILLE TIMES – AL.COM/AP

Competitors are given drinks during the men’s 10km open water swimming final during the 2019 World Championships in Yeosu, South Korea.
CREDIT: FINA ORGANISING COMMITTEE / YONHAP/ AFP

Market Closes for July 17^th, 2019

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Behind every stock is a company.  Find out what it’s doing. -Peter Lynch, b. 1944.
On this day in 1995, the Nasdaq rose 6.56 points to close at 1005.89, its first finish above the 1000 barrier. The index has gained more than 700% since then, closing at 8222.80 on Tuesday.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite fell for the second day, dropping 0.1 percent, or 18.21 to 16,484.21 in Toronto. The index dropped to the lowest closing level since July 8. Canadian National Railway Co. contributed the most to the index decline, decreasing 3.0 percent. Precision Drilling Corp. had the largest drop, falling 4.9 percent. Today, 127 of 239 shares fell, while 110 rose; 6 of 11 sectors were lower, led by industrials stocks.

Insights
* The index was little changed in the past 52 weeks. The MSCI AC Americas Index gained 6 percent in the same period
* The S&P/TSX Composite is 1.1 percent below its 52-week high on April 23, 2019 and 19.7 percent above its low on Dec. 24, 2018
* The S&P/TSX Composite is down 0.5 percent in the past 5 days and rose 0.8 percent in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 17.7 on a trailing basis and 15.2 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.1 percent on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$2.55 trillion
* 30-day price volatility fell to 6.02 percent compared with 6.04 percent in the previous session and the average of 7.53 percent over the past month
* The benchmark 10-year bond rose and the yield fell 5.6 basis points to 1.532 percent
* The S&P 500 Index declined 0.7 percent
US
By Rita Nazareth and Vildana Hajric
(Bloomberg) — U.S. stocks fell as investors assessed mixed corporate earnings amid concern over the U.S.-China trade spat. Treasuries rose. Industrials led the S&P 500 Index below 3,000, with CSX Corp. plunging 10% after a weakened sales forecast stoked fears of a prolonged freight slump. The Dow Jones Transportation Average, a barometer of economic growth, tumbled. Bank of America Corp. advanced as gains in its retail division drove overall profit to a record, while the trading unit saw a drop in revenue. Netflix Inc. plummeted in after-hours trading as its subscriber ads missed estimates.
While early indications are usually unreliable when it comes to earnings, investors have closely watched corporate reports for clues on the state of the world’s largest economy amid the threat of a trade war. Market sentiment was clearly dented after President Donald Trump said Tuesday he could impose more tariffs on China, pushing stocks down from a record high.
“Stocks’ strong gains are finally succumbing to profit- taking,” said Alec Young, managing director of global markets research at FTSE Russell. “Earnings and guidance so far have been mixed and, given the big run-up, it’s no surprise there’s little investor tolerance for even a hint of disappointment.”
The U.S. economy expanded at a modest pace with job gains slowing somewhat and  inflation remaining stable or slightly weaker, a Federal Reserve survey showed. The report is unlikely to sway the debate policy makers will have during the July 30-31 meeting. They’re expected to reduce rates by a quarter point, though a handful of regional Fed presidents appear uneasy about a cut. Elsewhere, oil sank after a mixed U.S. government report showed a surprising drop in fuel demand last week. Bitcoin climbed, while still trading below $10,000.
Here are some key events coming up:
* Monetary policy decisions are due in Indonesia, South Korea and South Africa on Thursday.

These are the main moves in markets:

Stocks
* The S&P 500 lost 0.7% to 2,984.42 as of 4 p.m. New York time.
* The Stoxx Europe 600 Index fell 0.4%.
* The MSCI Asia Pacific Index fell 0.1%.
Currencies
* The Bloomberg Dollar Spot Index decreased 0.1%.
* The euro rose 0.1% to $1.1224.
* The Japanese yen increased 0.1% to 108.08 per dollar.
Bonds
* The yield on 10-year Treasuries sank five basis points to 2.05%.
* Germany’s 10-year yield sank five basis points to -0.29%.
* Britain’s 10-year yield fell six basis points to 0.759%.
Commodities
* The Bloomberg Commodity Index fell 0.1%.
* West Texas Intermediate crude dipped 1.5% to $56.78 a barrel.
* Gold rose 0.9% to $1,423.30 an ounce.
–With assistance from Adam Haigh, Samuel Potter, Laura Curtis
and Robert Brand.
Have  a great night.

Be magnificent!
As ever,

Carolann

In the realm of ideas, everything depends on enthusiasm;
in the real world, all rests on perseverance.
 –Johann Wolfgang von Goethe, 1749-1832

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Senior Investment Advisor

Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7

Tel: 778.430.5808
(C): 250.881.0801
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com